7/10/2017 How Londons Gold Market, the Worlds Largest, Evolved: Timeline - Bloomberg

How Londons Gold Market, the Worlds Largest, Evolved: Timeline

By Eddie Van Der Walt

July 9, 2017, 4:01 PM PDT

London Metal Exchange starts gold futures trading on Monday

Until recently, market largely unchanged for about a century

After a three-decade hiatus, gold-futures trading is returning to London. Its the latest change for the citys bullion market, the worlds biggest
for over-the-counter trading, and which until fairly recently had remained largely unchanged for about a century.

Heres a timeline of main events over the past 350 years, according to the London Bullion Market Association.

1676

After moving to London from Amsterdam, Moses Mocatta partners with the East India Co. to ship gold to India. The rm he built, the oldest
member of Londons bullion market, has today evolved into ScotiaMocatta <http://www.scotiamocatta.com/> , part of the Bank of Nova Scotia.

1717

As master of the Royal Mint, Isaac Newton set gold at 4.75 pounds an ounce, a price which lasted two centuries. Gold costs about 945 pounds
($1,220) today.

1732

With gold volume rising in London, the Bank of England opened the citys rst bullion vault
<http://www.bankofengland.co.uk/publications/Documents/foi/disc070917.pdf> . By then, almost two-thirds of the worlds gold production was
passing through London.

1817

The Royal Mint produced the rst gold sovereigns, replacing the guinea, a coin equal to about a quarter-ounce of gold.

1871
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7/10/2017 How Londons Gold Market, the Worlds Largest, Evolved: Timeline - Bloomberg

The BOE began accepting 400-ounce bars (up from 200 ounces previously) -- the traditional size accepted globally today -- to meet demand
from central banks in Europe for their reserves.

1897

The rst silver xing took place at the London oce of Sharps & Wilkins, with dealers Mocatta & Goldsmid, Pixley & Abell, and Samuel
Montagu & Co. The daily process used by brokers, mining companies and jewelers to trade and set prices would remain largely unchanged for
more than a century.

1919

The rst gold xing took place. Meetings were held in a wood-paneled room at N.M. Rothschild & Sons Ltd.s oces until the process switched
to a telephone conference call in 2004. Dealers who met in the room each had small Union Jack ags to signal the need to change orders.

1934

The U.S. xed gold at $35 an ounce, with the American assay oce buying large amounts of the metal at that price. Londons good delivery
<http://www.lbma.org.uk/good-delivery-explained> list, which set quality standards for gold bars, expanded to include reneries and mints in
eight countries.

1985

The London Metal Exchange closed its gold futures market after just three years because of a lack of domestic investor and speculator interest.

1987

The BOE establishes the LBMA, the international trade association representing and overseeing Londons gold and silver market.

2014 and 2015

Silver became the rst <https://www.bloomberg.com/news/articles/2014-08-15/rst-daily-silver-price-set-after-end-of-london-xing> precious-

metal xing to move to an electronic auction after Deutsche Bank AG withdrew from the old phone system amid a pull-back from
commodities. Regulatory scrutiny of how benchmarks are set intensied after traders manipulated Libor rates. Platinum, palladium
<https://www.bloomberg.com/news/articles/2014-11-28/platinum-palladium-price-xings-make-way-for-electronic-system> and gold
<https://www.bloomberg.com/news/articles/2015-03-18/gold-loses-century-of-tradition-to-technology-in-setting-prices> xings were also
replaced by new electronic auctions.

2017

The LBMA is due to introduce a trade reporting service to boost transparency in the OTC market. The system is being developed by
technology rm Boat Services Ltd. and and optional trading platform being designed by Autilla Inc. is also set to be introduced.

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